DIA takes very seriously the fiduciary responsibility to act with good faith and
integrity on your behalf. DIA has a strong sense of loyalty to your interests, and
every action we take reflects that allegiance.
Based on the overwhelming results of extensive academic and market research, DIA
subscribes to an investment philosophy which believes that active management will
not add value to your investment portfolio. In fact, consensus from this research
has proven that over time very few active managers are able to consistently beat
their comparable benchmark. As a consequence, the use of active management results
in under performing portfolios, which in turn fails to meet client expectations.
Many individuals entrust their investment assets or retirement savings with an advisor
who provides the best “sales pitch” or fall prey to those advisors who unscrupulously
portray in great detail how they have some type of divine investment insight which
has eluded all the other existing advisory firms. Do not fall for this faulty line
Believe me, I wish I could shower all my prospective clients with fancy marketing
material about how DIA can consistently provide “above market” returns for clients.
This is just nonsense! The reality is the returns you will experience in the market
are a direct reflection of your tolerance for risk and the asset classes in which
you invest. This statement is not based on opinion; it is based on the findings of
extensive academic and professional research. To have an advisor say the contrary
or to think otherwise is just counterproductive, and worse yet, could prove detrimental
in achieving your financial goals and/or the long term success of your retirement
As a result, there are three primary objectives you should focus on as an investor/client
when considering an investment strategy. One, have a good understanding of your risk
tolerance. Two, understand your financial needs in retirement. Three, have a general
understanding of how markets work.
DIA’s job as an investment advisor is: One, educate clients. Two, use reasonable
assumptions about expected future market returns. Three, provide access to asset
classes through low cost index/passively managed funds and ETF’s.
Ultimately, you want an advisor who provides prudent financial advice which meets
your financial planning objectives while delivering this service in a fair and cost
effective manner. This all sounds pretty simple in theory doesn’t it? Unfortunately,
this task is poorly executed and rarely accomplished due to unreasonable client expectations
caused by advisors who fail to inform their clients adequately.
In his book, The Intelligent Asset Allocator, William Bernstein does a wonderful
job describing the different type of investors:
“There are two kinds of investors, be they large or small: those who don’t know where
the market is headed, and those who don’t know that they don’t know…….Then again,
there is actually a third type of investor – the investment professional, who indeed
knows that he or she doesn’t know, but whose livelihood depends upon appearing to
As someone considering an advisory firm, it is this third type of “investment professional”
in which you want to avoid. DIA believes those advisors who expend precious time
and energy trying to determine the next “game changing trend” or the next “exciting
hot stock” are engaged in a needless waste of time. Instead, DIA focuses its efforts
on developing broadly diversified portfolios with emphasis on low expense ratios,
minimizing transactions/turnover, and tax efficiency. By paying close attention to
those items in which DIA can control, clients can be assured they will receive their
fair share of market returns.